Monday, July 7, 2014

Is Amway A Scam?

I've seen many debates recently on why some people think Amway is a scam. Normally a defense of all this is that the abuses or the scam part of business, being the tools, is not the fault of Amway. It is true that Amway the corporation does not scam anyone, or sell them these tools. However, the groups such as WWDB, BWW, or Network 21 are run by IBOs. They are run by Amway IBOs. Even though the Amway corporation is a seperate entity from these tool companies, these tool comapnies are still run by Amway IBOs and they use the Amway opportunity to capitalize on the downline as customers of the tools.

While there is nothing wrong with some personal development and motivation, I believe there is a lack of honesty and tranparency in how the tools business is administered. For example, how many IBOs actually know exactly how to qualify for a cut of the tools income and is there a specific compensation plan for these tools? Allegedly, there are some documents explaining this but I do not believe the rank and file IBOs know about the details. In cases where diamond income was revealed, diamonds made significant income from the sale of tools. Some diamonds make a lot more from tools than from Amway. Also, since a diamond recognition is forever, even non qualifying diamonds can be getting significant income from Amway.

So why the label of scam? Because so few people actually make money from the Amway opportunity. Amway defenders like to cite that most IBOs simply do nothing. While iy may be true, this in itself represents a problem with the recruitment process or the recruiters. Even if you examine a big function where there may be tens of thousands in attendance, I wonder how many have a net gain after expenses? I would guess the answer to that is a fraction of 1%. Amway's own numbers reveal this. $115 a month average gross income. And .5 (one half of one percent) of IBOs reach the Gold/Platinum level where you earn about $1000 a month gross income, or near the equivalent of full time minimum wage.

And to gain this full time minimum wage proposition, you must overcome incredible challenges, including being able to replace IBOs who quit, and to replace them ast enough so your volume doesn't diappear. Thus some IBOs, desperate to sponsor, resort to tricks and deception to get people to see the plan. I experienced it myself. These actions, coupled with a low success rate, make it seem like a scam for most, especially when the tools are claimed (by the tool sellers) to be a bonafide means to success in Amway. Add all of these up, and over the years, you develop the reputation of "scam". Amway can do more to restore their reputation, but it is unknown to the public in general what and if anything is being done about the abuses.


  1. The leadership also turns a blind eye to deception or less than honest recruiting/volume creating practices if the results are coming in or if the upline needs the qualified leg.

    First hand knowledge here.

  2. I agree. I also believe Amway could do a better job in policing this but ironically, Amway benefits from more sign up and sales so I believe the are lax in enforcement for this reason.